No justification for data price hike, IT professionals tell NCC

The Nigeria Association of Information Technology Enabled Outsourcing Companies (NAITEOC) has said there is no justification for the Nigerian Communications Commission (NCC) and telecoms operators to increase data tariffs as the operators can still breakeven even with current operating cost. The NCC and telecoms operators had said the current data price regime in the country’s […]

The Nigeria Association of Information Technology Enabled Outsourcing Companies (NAITEOC) has said there is no justification for the Nigerian Communications Commission (NCC) and telecoms operators to increase data tariffs as the operators can still breakeven even with current operating cost.

The NCC and telecoms operators had said the current data price regime in the country’s telecoms sector was unsustainable.

They said the present economic challenges characterised by the steep depreciation of the naira had compounded their woes and made data hike imperative.

But the President of NAIOTEC, David Onu told journalists in an interview in Abuja on the sideline of the just concluded 4th Nigeria International Business Process Outsourcing Conference that the telcos were short-changing data buyers as “the tariffs are too high.”

“Costs of data in Nigeria are too high compared with other nations where data is almost a free commodity”, Onu said.

The telcos’ argument of high operating costs of during business is not correct, the NIATEOC president said.

“I am an IT guy and I have managed for some of these telecoms companies. I can tell you that it is not entirely correct to say the operating cost is high that is why data tariffs should be this expensive, I don’t believe this”, he said.

He said the Nigerian Communications Commission (NCC) should have let free enterprise be the rule of the market instead of considering small operators and new entrants.

“Even if you regulate tariff regime, it doesn’t make consumers go and buy from the small operators or new entrants. What will push a subscriber is quality service and not too prohibitive price”, the IT expert said.